Ecofy Secures INR 900 MN From Dutch Development Bank, FMO

Ecofy, an Indian green-only Non-Banking Financial Company (NBFC) that provides climate finance to Indian consumer and small business sector, secured an investment of INR 900 Mn from Dutch bank, FMO. It received the loan from the Dutch Entrepreneurial development bank, leveraging FMO’s AAA rating and global credibility.

Ecofy plans to grow its loan book, enable product diversification, and elevate its credit rating. Ecofy is promoted by Eversource Capital and NBFC Veterans, Rajashree Nambiar and Govind Sankaranarayanan. The investment is divided into two equal tranches. It comes with a commitment to climate action and is intended to fuel Ecofy’s loan book growth, facilitate product diversification, and support expansion pan India.

Dhanpal Jhaveri, Chief Executive Officer (CEO) of Eversource and Vice Chairman-Everstone Group said, “Ecofy has been set up to build a digital-first last mile climate finance solutions business to support India’s economic growth in a sustainable and inclusive manner. FMO has been a valuable partner to Eversource, and this investment is an opportunity to further consolidate this partnership.”

Rajashree Nambiar, Co-founder, Managing Director (MD) & Chief Executive Officer (CEO) of Ecofy, said, “Securing an investment from FMO marks an important moment for Ecofy, reinforcing our commitment to addressing the climate finance gap for small business owners and individuals. The investment aims to play a critical role in decarbonizing energy, particularly in a rapidly growing economy like India.”She added “This collaboration not only strengthens our financial standing but also affirms our vision for a cleaner and more resilient future.”

Cornelis Van Aerssen, Manager at FMO’s Private Equity Department said, “The collaboration with Ecofy gives us the chance to support improved access to climate friendly products to individuals and Small Medium Enterprise (SMEs) in India. We are especially enthused by the convergence of impact in terms of financial inclusion and positive environmental impact. This investment underscores our confidence in Ecofy’s leadership and reaffirms our commitment to supporting innovative solutions for sustainable development.”